What is the first step in creating good pricing processes?

• Define major pricing activities

• Map current processes

• Assess customer profitability

• Implement pricing technology

What characteristic distinguishes high-performing organizations in pricing?

• Ability to challenge industry norms

• Strict adherence to traditional pricing models

• Resistance to change

• Focus on short-term profitability

What was a significant consequence of Netflix's price increase in July 2011?

• Increased customer satisfaction

• Loss of 1 million subscribers

• Improved profitability

• Expansion of service offerings

What is a common barrier to implementing improved pricing strategies?

• Alignment with industry standards

• Resistance to change within the organization

• High customer demand

• Availability of pricing technology

What is the purpose of assessing customer profitability?

• To increase sales volume

• To provide high-level guidance for pricing moves

• To reduce marketing costs

• To enhance customer service

What is the second step in creating good pricing processes?

• Define major pricing activities

• Map current processes

• Assess customer profitability

• Implement pricing technology

What percentage of business schools offer a stand-alone course on pricing?

• 9 percent

• 15 percent

• 25 percent

• 50 percent

What is a common objection to linking sales incentives with profitability?

• Desire to increase sales volume

• Fear of revealing costs

• Need for higher commissions

• Preference for short-term gains

What is the primary focus of a centralized pricing function?

• To reduce costs

• To develop a core of expertise

• To increase sales volume

• To enhance customer service

Pricing systems need to perform two functions: support data analytics and enable systematic execution of a chosen strategy.

• • True

• • False